Garuda Indonesia (Garuda), the country's national airline, has announced its plans to resume trading its shares on the Indonesia Stock Exchange (IDX) after issuing around USD 80 million in Sukuk, according to Irfan Setiaputra, Chief Executive Officer (CEO) of the carrier on the 27th of December. Why it Matters? In June 2021, the IDX suspended Garuda’s trading of shares after it had failed to make coupon payments on USD 500 million Sukuk. According to previous statements made by stock market officials, the airline's ban was to be lifted, provided it issues additional Su...

On the 23rd of December 2022, the World Bank announced that it would issue USD 500 million in financing to boost and expand Egypt's Takaful and Karama social safety net programme.  Why it Matters? The Egyptian government created the Takaful and Karama programme as a countrywide Social Safety Network (SSN) initiative geared at protecting the disadvantaged through financial support. The funding will assist the programme in its efforts to give the most vulnerable and impoverished households chances for economic inclusion, paving the road for more enduring livelihoods independen...

The Kingdom of Saudi Arabia's (Saudi Arabia) National Debt Management Center (NDMC) has announced the closure of an SAR 4.699 billion (USD 1.25 billion) Sukuk issuance for December 2022 under the Saudi Arabian Government's SAR-denominated Sukuk Programme, as disclosed on the 20th of December 2022. Why it Matters? The offerings received bids totalling SAR 11.082 billion (USD 2.95 billion) and was split into two tranches, namely an SAR 4.094 billion (USD 1.09 million) issuance and an SAR 605 million offering, with respective maturity dates of 2032 and 2037. In July 2017, the Sukuk...

The Kunming-Montreal Agreement on biodiversity expands the expectations on financial institutions’ responsibilities towards the natural world. Islamic market financial sector stakeholders should take a cue from the Paris Agreement and build their capabilities to show what they are doing with regard to biodiversity. Doing so would complement their efforts on climate risk and open up new opportunities for investors pursuing ‘nature positive’ objectives in coming years. The COP15 (Kunming-Montreal) agreement is being called the ‘Paris Agreement’ for biodiversity a...

The Central Bank of Malaysia, Bank Negara Malaysia (BNM), has announced the release of an exposure draft of its policy document on Hajah (Need) and Darurah (Dire Necessity) on the 15th of December 2022. The document outlines BNM's proposed Shariah and operational requirements, as well as its expectations for the application of Hajah and Darurah by Islamic financial institutions in the course of conducting Islamic banking and Takaful business.Why it Matters? The policy document, among other things, specifies the parameters for the application of exceptional rules for Hajah and Dar...

Saudi Arabia's Nama Chemicals (Nama) has announced the signing of two Islamic Shariah-compliant finance arrangements totaling SAR 90 million (USD 24 million), as per a regulatory statement on the Saudi Stock Exchange Tadawul on 19th of December 2022. Why it Matters?  The facilities include a SAR 30 million (USD 8 million) Tawarruq facility arrangement with Riyad Bank as well as a Murabaha facility agreement for SAR 60 million (USD 16 million) with the National Bank of Kuwait and will be used as working capital. Details   The facilities...

A new Shariah Compliance Report for Community Shares has been released by Amanah Advisors on the potential for community share offers in being recognised as Shariah-compliant, as shared by the entity's Founder and Chief Executive Officer (CEO), Mufti Faraz Adam on the 12th of December 2022. Why it Matters?  The foundation of Islamic finance is Shariah-compliance and Shariah provides rules for business operations and the economy to make sure that all parties are treated fairly, that the transactions are fair, and that no unethical behaviour is being used. The report highlights so...

Financial institutions’ response to climate change by mapping out their risk from physical and transition risks is important. However, the speed of changes that financial institutions can make to limit their risk is constrained not by the risk metrics they look at but how quickly economic and social changes occur. To make the most impact on decarbonisation, financial institutions have to look at both the climate risks they face and the opportunities they can gain by scaling up financing the low-carbon economy.  Regulations like Malaysia’s new policy on climate risk manageme...

Dubai-based Emirates REIT has announced the closure of a Sukuk issuance worth USD 380 million to refinance USD 400 million existing Sukuk it had offered in 2017. Why it Matters?  The Sukuk offered by Emirates REIT in 2017 was rescinded in June 2021, for holders to swap their notes for new paper after the entity failed to secure the necessary investor backing. The consent solicitation saw the participation of over 88% of existing certificate holders as votes in support of the proposed refinancing totalled 99%. Among the features of the new Sukuk, proposed last month, are a se...

Nigeria is anticipating the listing of 50 Shariah-compliant products with a market value of NGN 5 trillion (USD 2.2 billion) between now and 2025, as per a statement made by Lamido Yuguda, the Director General of the Securities and Exchange Commission (SEC), on the 7th of December 2022. Why it Matters? The current expectations are consistent with the newly released, revised edition of the SEC's Capital Market Masterplan (2021-2025). According to Yuguda, the non-interest capital market (NICM) has enormous potential in the nation since it can draw in untapped individuals who seem unint...